Apple’s settlement: dissecting the $500m agreement and ongoing legal battles

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Apple has begun making payments in a long-running class action lawsuit over claims it deliberately slowed down certain iPhones in the US.
Apple has begun making payments in a long-running class action lawsuit over claims it deliberately slowed down certain iPhones in the US.

Apple has begun making payments in a long-running class action lawsuit over claims it deliberately slowed down certain iPhones in the US.

Compensation Details

Complainants involved in Apple’s $500 million settlement are set to receive a share equating to approximately $92 per claimant. 

The settlement, reached in 2020, aimed to resolve a lawsuit, with Apple maintaining its stance of denying any wrongdoing but expressing concerns over the escalating costs of prolonged litigation.

Origins of the Lawsuit

The case traces back to December 2017 when Apple confirmed suspicions among iPhone users by acknowledging deliberate performance slowdowns in aging iPhones. The tech giant explained that aging batteries led to reduced performance, justifying the “slowdown” to extend the devices’ lifespan. 

However, criticism arose over the alleged lack of disclosure to customers regarding this performance throttling.

Legal Outcomes and Actions in the US and UK

The resulting uproar prompted Apple to offer discounted battery replacements. This move spurred legal action in the US, with a recent settlement amounting to nearly four times the initially estimated payout per person.

Meanwhile, a similar lawsuit in the UK, representing an estimated 24 million iPhone users and initiated by Justin Gutmann, continues despite Apple’s attempts to block it. 

Apple has consistently refuted the allegations, labeling the lawsuit baseless and affirming its commitment to maintaining product quality and user experience.

Ongoing Battles and Future Proceedings

Gutmann, acknowledging the US settlement as a “moral victory,” highlights that it doesn’t influence the UK case’s trajectory. 

He remains committed to pursuing the matter in UK jurisdiction, despite Apple’s staunch resistance. 

The case is set to proceed to the Court of Appeal, where a decision will be made regarding Apple’s appeal to halt the proceedings.

The timeline for future proceedings remains uncertain, but Gutmann anticipates potential trial proceedings in late 2024 or early 2025, underscoring his determination to pursue justice within the UK legal framework.

Gary Monroe

Gary Monroe is a seasoned contributor to the Los Angeles Business Magazine, where he offers insightful analysis on local business trends and economic developments. With a focus on Los Angeles' dynamic commercial landscape, Gary's articles provide valuable perspectives for entrepreneurs and business professionals in the city.

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